The world's largest network equipment maker Cisco Systems Wednesday reported soaring profits of 56 percent in the fourth quarter, to $1.9 billion, compared to the same period last year.
Revenues were $11.7 billion, a 4 percent climb from 2011. The firm produces equipment to transport data, so-called routers and switches.
The result beat analysts' estimates, which had been sobered by the California-based company's elimination of 7,800 jobs since last year. Cisco head John Chambers has also cut prices to counter the European slow-down and be more competitive with rivals, Juniper Networks and Hewlett-Packard.
The company announced a boost in quarterly dividends from 8 cents to 14 cents. Financial chief Frank Calderoni said that showed that Cisco had enough financial strength to invest, hold off takeover attempts and distribute money to its stockholders.
The profit jump stemmed from the fact that Cisco has had to invest less money in restructuring. Chambers has slimmed down Cisco's product portfolio in addition to the job cuts after a period of stagnation. Share prices climbed 5 percent when the report was released after markets closed.
Most Popular Stories
- What Will Happen When Quantitative Easing Ends?
- MillerCoors Taps New Hispanic Ad Agency
- Calories Count: Starbucks to Post the Numbers on Menu Boards
- Aetna Leaving California's Individual Health Insurance Market
- Honda Says Sorry About the Lack of Electric Fits
- Comcast Takes a Stake in a YouTube Content Provider
- OSH Selling Most of Its Stores to Lowe's
- First Person Cured of AIDS Virus Wants to Help Others
- Charitable Giving Sees Encouraging Growth
- Katy Perry: Learned About Divorce Via Text Message